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Monday, August 12, 2013

Companies Bill, 2013 to Replace Companies Act, 1956

The Rajya Sabha has approved the all-encompassing new Companies Bill that will replace the Companies Act of 1956. The Companies Bill will be enacted into a law after the President of India, Mr Pranab Mukherjee, approves it. The Lok Sabha had passed the Bill in December 2012. Indian companies will now have to embrace the new strictures and come to terms with the new ways in which they will be regulated. The objective of the new law is to improve transparency and accountability in the companies as well as promote self-regulation. CSR Clause The latest bill will supersede the 57 year old Companies Act which has been amended more than 25 times to keep in tune with changing times. The amendments not withstanding, the Companies Act has many provisions that can said to be redundant. The passage of the Companies Bill has been hailed by all stakeholders including politicians and industry bodies. The 300 page Companies Bill makes sweeping changes including making corporate social responsibility

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